Second round financing allows you to maintain profitability and continually expand your business
Second round financing is for the initial expansion of an already established company. The company will have consistently growing accounts receivable and inventory before the expansion. The company will need additional capital for further marketing, the hiring of new employees and management, and for strategic partnerships within the specific market.
Generally, second round financing will come from investors including angel investors or a venture capital firm. The financing right before the expansion will also help a business secure a business bank loan because their balance sheet will look a lot better with the increased funding. This will give them more bartering power when they attempt to obtain a loan. The loan will be used to further expand the company.
There are two main stages of second round financing. There is series "A" round which includes the funding for marketing and personnel. Then there is series "B" round which is the funding needed to develop strategic partnerships within the specific market. The main reason for distinguishing between these is for investors. It will help new investors understand where they stand compared to other investors. Make sure you fully understand the growth track of your business, so you can correctly identify a point when you need additional financing. You never want to wait for financing and stop a good thing.
We can help you find investors and lenders for your business. Simply tell us a little bit about your company and we will bring up a list of lenders that can provide your business with the financing it needs.